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Risk in Public Policy Making: A Neglected Issue in Australia

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Author Info
Hardaker, J. Brian
Fleming, Euan
Lien, Gudbrand
Abstract

We argue for greater recognition of the risky nature of most policy decisions. In this context we discuss the gulf between public risk perceptions and attitudes and those of 'experts'. Public views of risk are often inconsistent and seemingly irrational. They nevertheless influence policy choices in a democracy. On the other hand, experts often claim unjustifiable levels of confidence in their predictions of policy choice outcomes, creating a lack of public faith in their recommendations. While risky policy choices deserve more systematic decision analysis, there is a need for more effective interaction between policy makers, decision analysts and the public.

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Paper provided by Australian Agricultural and Resource Economics Society in its series 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia with number 5997.

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Date of creation: 2008
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Handle: RePEc:ags:aare08:5997

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Related research
Keywords: Policy-making; Risk; Uncertainty; Decision Analysis; Perceptions; Subjectivity; Institutional and Behavioral Economics; Political Economy; Risk and Uncertainty;

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References listed on IDEAS
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  1. Anderson, Jock R., 1989. "Reconsiderations On Risk Deductions In Public Project Appraisal," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 33(02), August. [Downloadable!]
  2. Crowards, Tom M., 1998. "Safe Minimum Standards: costs and opportunities," Ecological Economics, Elsevier, vol. 25(3), pages 303-314, June. [Downloadable!] (restricted)
  3. Bjornstad, David J. & McKee, Michael, 2006. "Making enduring choices: Uncertainty and public policy," Energy Economics, Elsevier, vol. 28(5-6), pages 667-676, November. [Downloadable!] (restricted)
  4. De Reyck, Bert & Degraeve, Zeger & Vandenborre, Roger, 2008. "Project options valuation with net present value and decision tree analysis," European Journal of Operational Research, Elsevier, vol. 184(1), pages 341-355, January. [Downloadable!] (restricted)
  5. Kelly, David L. & Kolstad, Charles D., 1999. "Bayesian learning, growth, and pollution," Journal of Economic Dynamics and Control, Elsevier, vol. 23(4), pages 491-518, February. [Downloadable!] (restricted)
  6. Gordon C. Rausser & Richard E. Just, 1981. "Principles of policy modeling in agriculture," Proceedings, Federal Reserve Bank of Kansas City, pages 139-178.
  7. W. Kip Viscusi & Joseph E. Aldy, 2003. "The Value of a Statistical Life: A Critical Review of Market Estimates throughout the World," NBER Working Papers 9487, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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